Glossary
CMR
Definition
The CMR (Convention on the Contract for the International Carriage of Goods by Road) is a United Nations convention devised to standardize the legal framework governing international road transportation of goods. Initiated in Geneva on May 19, 1956, this convention delineates the rights, duties, and liabilities of carriers, shippers, and consignees involved in international road transport, aiming to foster trade efficiency and mitigate disputes
— sennder Team
FAQ
The CMR convention is crucial in logistics as it presents a harmonized legal landscape for international road transport of goods, thereby minimizing misunderstandings and disputes, which in turn, facilitates smoother and more efficient cross-border goods movement. This enhanced efficiency in goods movement significantly contributes to global supply chain efficiency
The CMR Convention encompasses various pivotal provisions:
Consignment Note: A document confirming the contract of carriage, which must be signed by both the sender and the carrier, serving as a record of the carrier's responsibilities.
Carrier Responsibilities and Liabilities: Carriers are held accountable for total or partial loss of, or damage to the goods from the time they are collected until they are delivered1.
Sender Responsibilities: Includes filling out the consignment note and providing all necessary transport documents, and being liable for any inaccurate or inadequate entries in these documents.
Claims and Limitation Periods: In case of loss, damage, or delay, claims can be filed against the carrier, with certain limitation periods provided for such claims.
Under CFR, the risk transfers to the buyer once the goods are loaded onto the vessel at the port of origin, but neither the seller nor the buyer is obligated to insure the goods5.
In FOB terms, both the cost and the risk transfer at the point of export.
CIF is similar to CFR; however, under CIF, the seller is also required to provide insurance coverage for the goods during transit.
As of 2023, a considerable number of countries, primarily from Europe, along with some from Asia and Africa, are party to the CMR Convention or its electronic protocol (eCMR). These include Belarus, Bulgaria, Czech Republic, Denmark, Estonia, Finland, France, Germany, Iran, Latvia, Lithuania, Luxembourg, Moldova, The Netherlands, Norway, Oman, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Tajikistan, Ukraine, United Kingdom, Uzbekistan, and Kyrgyzstan.
The CMR Convention can influence the cost of international road transportation by standardizing carrier liabilities and documentation requirements, potentially reducing legal and administrative costs. However, adherence to the CMR can also impose additional responsibilities on carriers to ensure cargo safety and compliance, which might increase operational costs. Ultimately, the Convention aims to provide predictability in costs related to claims and liabilities.
Under the CMR Convention, carriers are liable for the loss, damage, or delay of goods during transportation, except in cases where the loss or damage is due to the shipper's fault, inherent vice of the goods, or circumstances the carrier could not avoid and the consequences of which they were unable to prevent. The Convention also caps the amount of compensation based on the value of the goods, typically calculated per kilogram of gross weight lost or damaged.
The e-CMR protocol under the CMR Convention allows for electronic consignment notes, modernizing the documentation process. This digital approach enhances efficiency, reduces paperwork, and improves tracking and transparency of shipments. The e-CMR is legally equivalent to its paper counterpart but offers better data management and accessibility.
While the CMR Convention sets minimum standards for contracts of international road transportation, parties cannot derogate from these provisions to the detriment of the sender or consignee through contractual agreements. However, certain aspects not covered by the CMR can be subject to national laws or additional agreements, provided they do not conflict with the Convention's mandatory rules.
Disputes under the CMR Convention are generally resolved through the judicial systems of the countries involved, following the legal procedures applicable in the country where the claim is brought. The Convention specifies which courts have jurisdiction, often giving the claimant a choice to bring a case in the country where the carrier is based, where the carriage took place, or where the consignee accepts delivery.
Example or usage in road freight logistics:
A road freight carrier based in Germany is contracted to transport a shipment of goods from Germany to Spain. As both countries are party to the CMR Convention, the carrier and the shipper must adhere to the Convention's provisions concerning international road transportation of the goods. The carrier ensures safe and timely transportation, provides the necessary CMR consignment note, and remains liable for any loss, damage, or delay that may occur during the transportation process, as per the CMR Convention.
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